Mumbai:
A sell-off in stock markets around the world Thursday affected
Indian equities as well with a benchmark index plummeting 704
points - its worst fall in over two years - and broader markets
under a firm bearish grip.

US Federal Reserve's comments that there were significant risks to
the economic growth triggered off panic selling in equities across
the world.

The sensitive index (Sensex) of the Bombay Stock Exchange (BSE),
which opened in the red at 16,827.85 points, nose-dived 704 points
or 4.13 percent to close at 16,361.15 points compared to the
previous close at 17,065.15 points.

The 30-scrip index slumped to an intra-day low of 16,316.03
points. Thursday's fall has been the worst in over two years for
the benchmark.

The 50-scrip S&P CNX Nifty of the National Stock Exchange also
fell sharply and closed 209.6 points or 4.08 percent down at
4,923.65 points.

Selling pressure was across the board as all the broader markets
as well as sectoral indices closed deep in the red. Realty,
metals, oil and gas, capital goods and banking indices of the BSE
closed between 4-6 percent.

"Today's fall has come as market felt Feds $400 billion package
may not be sufficient to solve the crisis. Further, the rumours
that European insurance company Lloyds pulling out the bank
deposits from the European banks also added to the nervousness,"
said D.K. Aggarwal, chairman and managing director, SMC
Investments and Advisors.

"Along with this, rupee weakening to two-year lows is expected to
add up to the inflationary figures putting further pressure on the
economy," he added.

According to data available with the Securities and Exchange Board
of India (SEBI), foreign institutional investors were net buyers
to the tune of $69.67 million.

All 30 stocks on the Sensex ended on the losing side. Prominent
losers were Jaiprakash Associates, down 9.33 percent at Rs.67.05;
DLF, down 7.16 percent at Rs.197.85; RIL, down 6.16 percent at
Rs.786.454; and Bharti Airtel, down 5.22 percent at Rs.372.

All other Asian markets too fell sharply with key indices in
various countries losing between 2-5 percent.

With Prime
Minister Manmohan Singh away in New York, the phone airwaves case
rocked the government again Thursday, this time over a
six-month-old note of the finance ministry that fell just short of
indicting Home Minister P. Chidambaram, sparking a war of words
between the Congress »

Promising demographics, freedom of
speech and respect for investor rights make India one of the most
appealing growth venues, says a leading American B-school head
while advising that the country must "truly" integrate into »

Picture of the Day

Palestinian President Mahmoud Abbas in
United Nations listening to the speech of US President Barack
Obama September 21, 2001.

Ummid.com is part of
theAwaz
Multimedia & Publicationsproviding World News, News Analysis and Feature
Articles on Education, Health. Politics, Technology,
Sports, Entertainment, Industry etc. The articles or the views displayed on
this website are for public information and in no way describe the
editorial views. The users are entitled to use this site subject to the
terms and conditions mentioned.